Xcel Brands, Inc. Announces Newborn & Infant Apparel Licensing Deal With bon bebe

Xcel Brands, Inc. (OTCQB:XELB) has signed an exclusive licensing agreement with bon bébé. This agreement will give bon bébé the license to manufacture and distribute newborn, infant apparel and accessories for the Isaac Mizrahi New York brand. The collection with debut at retail on Fall 2012.

Robert D'Loren, Chairman and Chief Executive Officer, Xcel Brands, Inc. said, "I am very excited to partner with bon bébé to launch our Fall 2012 newborn and infant collections. This license is a great addition to our growing brand."

Isaac Mizrahi, Creative Director, Xcel Brands, Inc. said, "Designing children's clothing is a dream come true for me. My father owned a company of children's apparel and I grew up in that field. My design-heart has its roots in children's clothes and I am excited to partner with bon bébé."

René Rofé, President & CEO of International Intimates, Inc., bon bébé's parent company said, "We are excited to be joining forces with Xcel Brands to produce and market newborn and infant apparel and accessories under the Isaac Mizrahi New York brand. We are confident that Isaac's impeccable taste, blending elegance and whimsy, coupled with bon bébé's uncompromising attention to quality and detail will result in baby collections that mothers will love."

Xcel Brands, Inc. ("Xcel") engages in the acquisition, design, licensing, and marketing of consumer brands. In 2011, Xcel acquired designer apparel brand Isaac Mizrahi New York. Xcel's management team consists of executives with significant experience in creating and growing businesses in the branded consumer products industry and a proven track record for successfully completing multiple similar acquisitions. Xcel will seek to acquire brands that it can utilize in a multi-channel distribution strategy (bricks and mortar, internet retailers and interactive media) with a focus on identifying designers or celebrities with personalities that connect directly with consumers through social and other media.

Isaac Mizrahi has been a leader in the fashion industry for almost 30 years. Since his first collection in 1987, Mr. Mizrahi's designs have come to stand for timeless, cosmopolitan style. He has been awarded four CFDA awards, including a special award in 1996 for the groundbreaking documentary "Unzipped." In December 2009, Mr. Mizrahi launched his lifestyle collection, ISAACMIZRAHILIVE! on QVC. In addition, television audiences have come to value Isaac's media presence through his roles on "Project Runway All Stars" for Lifetime, "The Fashion Show" for Bravo and his own series for both Oxygen and the Style Network.

bon bébé is a leading designer, importer and wholesaler of baby clothes and accessories under the well-recognized brands, bon bébé, René Rofé Baby, and Wildchild. bon bébé provides trusted products that meet standards of discerning parents everywhere with a unique combination of quality, style and value. bon bébé's products are available in department stores, specialty stores, and gift shops nationwide.

CONTACT: Erika Stair
         Director of Public Relations
         Xcel Brands, Inc.
         347-727-2476
         [e-mail]